Cattle prices are pushing toward record highs, but Total Farm Marketing Market Analyst Bryan Doherty warns that the rally could be approaching a top. Doherty says investors should keep perspective as the market accelerates. “Nothing has really slowed the market down on a grander scale, yet I will always be cognizant that when a market accelerates after a long-term uptrend, I want to keep in perspective that the market may be trying to put in the top.” Doherty explains that strong buyer activity and limited selling are contributing to the rally. “You’ve got buyers who are long and buying more because it’s working. Sellers get kicked out with buy stops, and others don’t want to step in front of this strong market. So you’re having an absence of sellers until there’s a better sign that the top is in.” He says while fundamentals remain supportive, traders should watch closely for shifts in market behavior that could indicate a peak.
